Legal Tip 373: Can a Minor Child be a Trustee?

Discussion in 'Legal Issues' started by Terry_w, 17th Jan, 2022.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Children are generally considered to be legally disabled until they reach the age of 18.

    As such they cannot be trustees for others (or directors).


    The NSW Conveyancing Act 1919 also makes such an appointment void

    Section 151A

    CONVEYANCING ACT 1919 - SECT 151A Minors not to be appointed trustees

    Similar provisions would exist in other states as well.
     
    Terry_w, 17th Jan, 2022
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    There can be strategies the other way about. When a child turns 18 there is a change of trustee. QLD is far from kind on the strategy and can impose transfer duty on a change of appointor powers. All reasons for quality legal advice.
     
    Paul@PAS, 17th Jan, 2022
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